PT Ancora Indonesia Resources, Tbk. (“AIR”) has entered into a Conditional Sales and Purchase Agreement with PT Ancora Energy (“AE”) on 10th December 2010, whereby AIR will purchase 76 (seventy six) shares or 50.6% (fifty point six percent) stakes in PT Raja Kutai Baru Makmur (“RKBM”) from AE. The Conditional Sales and Purchase Agreement shall be conditional upon General Meeting of Shareholder approval, BAPEPAM approval, independent valuer (appraisal), waiver from lender and all other approval required by law.

RKBM is a coal mining company owning a Mining Concession Permit (IUP) in Kutai Kertanegara Regency with a total concession area +/- 8.500Ha.

At this moment, RKBM is undergoing a JORC drilling. Up to now, RKBM has completed JORC drilling program for an area of +/- 550Ha and has discovered JORC standard coal resources of around 50 million tons for that 550Ha area. We will continue our drilling program to cover the remaining area and are optimistic that we will find further reserves. RKBM is already in production stage starting this year and has constantly produce about 30,000 – 40,000 tons / month. We are targeting to increase its production profile to 100,000 – 150,000 tons / month by 2011.

Purchase price for the 50.6% stake in RKBM is set at US$ 0.6/metric ton (zero point six dollars per metric ton) with a maximum cap of 40 million ton with a minimum payment of US$ 10,460,000.

Jakarta, 14th December 2010
PT Ancora Indonesia Resources, Tbk.